Food Service Market is Expected to Reach USD 6,791 billion by 2030
As per the latest report published by Kings Research, the global Food Service Market was valued at USD 5,461 billion in 2022 and is projected to reach USD 6,791 billion by 2030, exhibiting a CAGR of 2.82% from 2023 to 2030.
With rising consumer disposable income, the demand for food services has increased significantly in recent years. Rapid urbanization has shown exponential growth owing to migrating populations, which in turn has propelled the need for better food service systems. A significant increase in non-commercial food service types is especially observed in developing countries. Furthermore, the development of catering systems is anticipated to support market growth owing to the rising demand for food catering from commercial spaces such as hospitals, old age and orphanage care homes, business hubs, and centralized.
The food service market has experienced substantial developments owing to changing consumer food preferences, demand for healthier food services, and implementation of food hygiene regulations by governing authorities. The food service market plays a vital role as one of the major sectors contributing to the GDP of any country.
- Based on service type, the commercial segment held the largest market share of 76.34% in 2022
- Based on food system, the conventional segment generated the highest revenue of 2,391.70 billion in 2022
- On the basis of region, Asia Pacific accounted for the largest market share of 43.32% in 2022
Acquisition of Canarchy Craft Brewery Collective by Monster Beverage Company
January 2022: Monster Beverage Company has reached an agreement to acquire Canarchy Craft Brewery Collective in a full acquisition deal at a valuation of USD 330 million. Canarchy Craft Brewery specializes in the manufacturing of craft beer. The motive for the acquisition is to expand its product line.
Acquisition of Majority Stake of SmartQ by Compass Group, India
March 2021: Compass Group is a multinational contract food service and facilities management company based in the UK. The Indian unit of Compass Group signed a deal to acquire a significant stake in SmartQ, a food-tech start-up based in Bangalore, India. SmartQ is a platform that facilitates contactless ordering and payment for food services at corporate cafeterias and F&B outlets. The company's technology enables employees of corporate clients to place orders for food and beverages via mobile apps, and offers a hassle-free way to make contactless payments using digital wallets.
Global Food Service Market to Augment with Rising Demand for Multi-Cuisines
The diverse range of cuisine offered by food service companies is attracting more consumers who prefer varied cultural dining experiences. The need for the provision of multi-cuisines is supported by a migrating population seeking opportunities across the globe. The rise in the number of food service providers or companies has increased the demand for the establishment of food institutions globally.
The establishment of regulatory requirements for food hygiene is expected to support market growth. Governing authorities regulate standards to raise the caliber of food offered throughout the globe. Regularization of food standards, particularly in emerging nations, is a significant aspect that is anticipated to support the growth of the global food service market.
Changing Consumer Preferences to Provide Opportunities for Market Expansion
The adoption of vegan food and the awareness of health-conscious diets are two key factors that are likely to propel the global food service market. On account of the need for a variety of vegan food, the rising demand for vegan food items balances the rising demand for other food. Despite a balanced demand, the market experiences significant growth primarily due to the rise in demand for other food items.
Since the food service market is primarily focused on several factors, such as serving consumers and shifting customer preferences in regions where food supply is limited, this, in turn, can constrain market growth. Large-scale food contamination outbreaks and related incidents affect the local economy. when such incidents occur, the amount of discretionary money that customers have also fluctuates. The chain of custody for food is substantially impacted when illnesses or infectious germs and viruses break out.
Asia Pacific Emerges as the Dominant Region in the Food & Beverage Industry with China Leading the Market
Asia Pacific held the largest market share in 2022 due to surging consumer demands and a rise in the working population. Asia Pacific is estimated to accrue market revenue of USD 2,431 billion in 2023. Growth in demand has offered opportunities for new entrants and thus attracted capital investments and the establishment of new businesses and strategic services. The expansion of the market in the region has significantly increased competition. China is the most prominent country in the region, accounting for the largest revenue share of 42.1% along with the highest growth rate of 4.05% during 2023 - 2030. Japan and India are anticipated to support market growth due to increasing demand for food & beverage services and rising urbanization in the region.
Innovative Food Service Techniques and Trends Fuel North America's Growth in the Food Services Market
North America is anticipated to emerge as the second-largest market for food services, contributing a significant regional share of 23% in terms of revenue generated. Changing consumer lifestyles is a key factor in augmenting regional market growth. Furthermore, several factors supporting regional market growth include the development of innovative food service techniques and food trends.
A Look at Key Players and Growth Strategies in the Industry
The food service industry is fragmented with key players such as Amoy Food Ltd., Aramark Corporation, Compass Group PLC, Darden Concepts, Inc., Domino's IP Holder LLC, Mitchells & Butlers, McDonald's, Starbucks Coffee Company, Wendy’s Company (Quality Is Our Recipe, LLC), amongst others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.